The Nationwide recently moved to increase the deposit ratio on all but 2 of its mortgage products. New customers are now required to have a deposit of 10%. For an average house price of £200,000 this means new first time buyers must find an extra £10,000.
However, the Nationwide did cut its standard variable rate, in line with the Bank of England. It’s standard variable rate, with no costs for signing up presents one of its most attractive mortgage deals. This is unusual for a mortgage market where the best deals are usually found in fixed rate or tracker mortgage deals.
The increase in the deposit ratio, is a sign that the Bank of England’s recent injection of liquidity into the money markets may be insufficient to boost mortgage liquidity.
It also came on a day when house prices showed their first annual year on year fall, for many years